Northwest Airlines Sinks Investors

Prolonged downsides are to be avoided because most downside buy and sell combinations are unprofitable. And the downside that ended in bankruptcy for Northwest Airlines (NWACQ) is no exception.

The percent returns chart shows the percent gain or loss for each bi-weekly buy and sell combination from July 12, 2000 through September 23, 2005. Only 1,658 (18.06%) of the 9,180 possible buy and sell combinations made money (green). The large red area shows the 7,522 (81.94%) money-losing trades.

The winners and losers map shows the profitable (green) and non-profitable (red) buy and sell combinations from a direct overhead view. The most significant feature of the map is the preponderance of losing buy and sell combinations.